Road bidding requirements to be reviewed<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The government will review its bidding requirements for future
\ntoll road projects, following somewhat unsuccessful tenders on
\nsix projects -- two of which failed to receive any interest from
\ninvestors.<\/p>\n
Minister of Public Works Djoko Kirmanto said he would not
\nimmediately start the planned bidding process of 13 expressway
\nprojects, worth more than Rp 1 trillion (US$96.1 million), unless
\na review on the bidding conditions had been completed.<\/p>\n
\"I think for this year, we can only propose the six projects.
\nWe are still reviewing several conditions in our tender process
\nin order to make future bidding processes more successful,\" said
\nDjoko at the Presidential Palace on Wednesday.<\/p>\n
Shortly after the much-hyped Infrastructure Summit earlier
\nthis year, the government offered six toll road projects worth
\nmore than Rp 3 trillion, and the offers were completed last
\nmonth.<\/p>\n
However, only four projects have secured bids from investors.
\nThe projects are the Cikarang and Tanjung Priok roads in Greater
\nJakarta, the road between Depok and Jl. Antasari in South
\nJakarta, the Cinere and Jagorawi route in Bogor, and one through
\nMakassar.<\/p>\n
Two other projects, one linking Medan and Binjai in North
\nSumatra and one connecting the Cileunyi, Sumedang and Dawuan in
\nWest Java, failed to get any bids, most likely due to a
\nrequirement in the tender process, which allows the government to
\ntake over the projects if the investors incur bad debts.<\/p>\n
The six are part of the government's plan to build a total of
\n1,300 kilometers of toll roads over the next five years,
\neventually providing a direct expressway link between Merak,
\nBanten on the extreme western tip of Java to Banyuwangi, East
\nJava on the eastern tip of the island.<\/p>\n
The projects are part of the government's effort to prevent
\ncongestion in distribution, which significantly increases the
\ncost of doing business here.<\/p>\n
The lack of highway capacity is plain to see as daily
\ncongestion is a fact of life on most key roads that link one
\nprovince to another throughout Java, the country's economic
\ncenter.<\/p>\n
Meanwhile, the Indonesian Chamber of Commerce and Industry
\n(Kadin) announced that the government had officially delayed a
\nplan to hold the second Infrastructure Summit initially slated
\nfor Nov. 14 to Nov. 16.<\/p>\n
The event will be rescheduled to Feb. 9 to Feb. 11 next year.<\/p>\n
Kadin, however, did not specify the main reason for the
\npostponement.<\/p>",
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